Wednesday, October 29, 2014

Option Open Interest for 29-10-2014

Inference
The index opened huge gap-up around 8077 and stayed in a narrow range of 20-25 points for the better part of the day, only to see breakout to close near the top at 8090.45, huge gain of 62.85 points. The broader market was also positive, with 866 advances to 656 declines. Expiry range has come down to 8030-8140.
  • Call option 8150 added huge 5.78 lacs OI with short covering seen at 8050 and below strike prices.
  • Put option 8150-8000 added huge 33.94 lacs OI with profit booking seen at 7900 and below strike prices.
  • Nifty Open Interest is at 1,21,24,500 down by 15,21,250, whereas Nov series added 47.05 lacs with increase in price, probably 100% roll-over with huge long addition.
  • Bank Nifty Open Interest is at 13,73,000 down 2,45,125, whereas Nov series added 2.41 lacs with decrease in price, probably 100% roll-over with small long liquidation.
  • FII’s bought huge 26.46 lacs Futures, which includes 45086 contracts long build-up and 7834 contracts short covering, with increase in net OI by 37252 contracts (includes 169524 longs to 116604 shorts for the day) and the average price per contract comes to around 8152.89.
  • FII’s Index future open contract as on date is 375225 Longs to 119420 Shorts, net long 255805 up by 52920 contracts.
  • Initial support now at 8050, with huge OI addition of 18.14 lacs and below that at 8000 with huge OI of 57.59 lacs.
  • Initial and best resistance still at 8100, with highest OI of 60.41 lacs and above that at 8200 with huge OI of 52.58 lacs.
  • Day Range as per Option Table is 8024 - 8141 and as per VIX is 8035 - 8146 with 8080 as the Pivot.
November Series Option Table is tilted towards the Bulls

Option Call for 30-10-2014
Buy Nifty 8050CE above 48 for targets of 56, 65 SL - 44
Buy Nifty 8100PE above 37 for targets of 47, 64 SL - 31

India VIX : 13.01 down by 0.31 points
Call OI : 29517150
Put OI : 38898050
PCR OI : 1.318
SMR : 9.87 (Bullish: The PE writers just a day before expiry has added huge at 8100-8050, only a gap-down below 8050 can see expiry around the lower end else 8100 plus looks certain...)